Milton Friedman is one of my all time favorite economists, Tom Schelling another.  Both won Nobel prizes and each contributed greatly to my understanding of how the world works.  I knew Milton and Rose longer but Tom and Alice much better.  While we live geographically far apart and the Friedman’s are gone, the Schelling’s remain among our most cherished friends.  We feel blessed to have met couples of their quality and Ramona and I carry their influence with us. 

Here is a profound economic insight from Milton and another from Tom.  Milton was born in New York in 1912.  In the late 19th and early 20th Century many bars would advertise "Free Lunch Served Here" to attract drinkers.  While the first drink cost less than the value of the food, subsequent drinks subsidized the "free lunch."  Drinkers ultimately paid for the lunches. 

In 1975 Milton published a book entitled There's No Such Thing as a Free Lunch.  (This is often abbreviated as TANSTAAFL and that is also the title of another book.)  Today when economists use the term they are usually exposing the false claims of politicians who claim their proposals will generate benefits but cost nothing on net. 

Politicians normally seek and use government to provide favors for their constituencies.  Federal corn ethanol mandates and subsidized wind farms are classical examples.   Such wealth transfers are always justified as advancing dimensions of the "public good," never for aiding a privileged group.

I once challenged Milton, pointing out an exception to his TANSTAAFL claim.  When an entrepreneur in either the for-profit or non-profit sector takes an existing bundle of resources and through innovation generates an increase in value, society has been granted a "free lunch."  

Of course the entrepreneur has invested his time, mind, and other of his/her resources in the winning project and the loss of these is the opportunity cost foregone.  I don't find this objection a persuasive argument.   I believe there are free lunches and entrepreneurs are the chefs who provide them.

In Schelling's preface to his book Arms and Influence, published by Yale University Press in 1966, Tom notes: "One of the lamentable principles of human productivity is that it is easier to destroy than to create. A house that takes several man-years to create can be burned down in an hour by any young delinquent who has the price of a box of matches." 

Likewise, a community that has taken generations to build can be disrupted and depreciated by an opportunist with no ties to the community.  This is trivially easy to him; he pays no psychic cost if a cultural stranger.  He sees an opportunity to gain personal wealth by imposing substantial costs on others. 

Alas, here is another important economic truth, one with high costs when formulating decisions and making policy.  The things that planners, economists, and scientists measure best are not those that matter most.  One obvious example is community.  Yes we can count the number of people and measure many demographic factors such as age, gender, and education.  We can only sense, but not accurately calibrate the quality and strength of a community. 

My community is Gallatin Gateway and a man has approached with a box of matches.  His box holds 190 trailer houses and supporting commercial establishments to be placed on 50 acres.  A magnet for migrants, a man-camp for Big Sky, it will bring shades of the Bakken to a Bozeman community. 

Please note I have no animus toward trailers or manufactured homes.  Modern ones can provide good housing at modest cost.  I happily lived in one while a grad student. Some friends still do.  

Gateway has several real gems.  One is the school that is led by a truly wonderful principal, Kim DeBruycker.  She is a remarkable leader and has built a wonderful K-8th school. I've observed her progress with the school for over a decade.   The school's home page correctly notes: "The school has established itself in this deep rooted community and is continuing to thrive and expand to serve more and more students each year." I wish our grandchildren went there.  (All now attend good independent, not government schools.) 

Another treasure is, please pay attention, the Willing Workers Ladies Aid.  This organization was created to aid American servicemen in WWI, is active today, and owns and manages the Gallatin Gateway Community Center.  This facility was built entirely with voluntarily given, not taxpayer, funds and volunteer labor.  Ramona and I contributed both.  Great investment.  The Community Center really does provide free dinners.  All are welcome; donations are accepted. 

I don't how to measure the value of the asset called community but know it's at risk.  Would the proposed trailer park jeopardize community integrity?  Would it erode trust built over years, decades, or generations? Will a logger still be able to leave his chainsaws in the back of his parked pickup as my neighbor Billy Alsop did until he retired?  Will any of these community values be enhanced by the proposed development?

I intend this proposed threat to our community as a parable for teaching economics, not a historical document. I trust it shows how some of the economic wisdom I learned from professors Friedman and Schelling helps me understand contentious issues.  Such thinking is part of what we share in FREE's conferences for seminary professors, other religious leaders, and federal judges.